Kinepolis saw the recovery in attendance at its cinemas continue and regained its solidity financial
Regulated information
August 18, 2022, 7:00 a.m.
Kinepolis recorded a strong recovery in its operating result and free cash flow in the first half of 2022. The Group saw a gradual recovery in its cinema attendance in all countries. Those who were initially behind are now catching up. The summer holidays started out promisingly, only to suffer from the heat wave.
In the first half of 2022, Kinepolis welcomed five times more visitors than in the first half of 2021, i.e. 77.2% of visitors compared to the same period in 2019. While in the first quarter, the Covid measures were still in effect in most countries and Dutch cinemas, as well as some Canadian cinemas, remained closed until the end of January, the measures were lifted in the second quarter for all complexes. . In the month of June, “Top Gun: Maverick”, “Jurassic World: The World After” and “Elvis” contributed to a recovery in attendance reaching up to 107.0% of the attendance for the month of June 2019 .
Average sales per visitor remained high thanks to strong demand for experience and premium products, enabling a faster recovery in visitor revenue relative to footfall. The other lines of business also recorded a good recovery, in particular B2B activities, thanks to a significant increase in the number of corporate events.
The implementation of the Entrepreneurship plan has largely contributed to the recovery of operating profit as well as to the development of the product offer. Thanks to its renewed financial solidity, Kinepolis will be able to continue to invest in its external expansion and the premiumization of its offer.
Main achievements in H1 2022
- Appointment of Mr. Jeroen Mouton as new CFO. He will take office on November 15, 2022.
- Agreement for the resumption of operation of two Spanish cinemas (Marbella and Barcelona) from November 2022.
- Investments in a premium cinema experience with the introduction of, among others, “Premiere Seats” in ten Landmark cinemas, the installation of 200 laser projectors in 2022 as well as the preparation of the roll-out of premium concepts in the United States.
- Agreement for the deployment of the TMS Eikona Cinema Manager system in Europe.
H1 2022 key figures1 2
- Kinepolis welcomed 13.7 million visitors during the first half, or 77.2% of the number of visitors during the same period in 2019, enabling it to achieve 93.5%3 in turnover compared to the first half of 2019. In the second quarter, Kinepolis recorded an attendance of 86.9% compared to the 2nd quarter of 2019, for a turnover of 103.9%3 from that of the 2nd quarter of 2019.
- The sales per visitor (tickets, drinks and snacks) remained high, even exceeding those of 2021.
- In the first semester, theEBITDA amounted to €68.2 million and theEBITDAL (EBITDA adjusted for rents) at €50.4 million.
- the total profit amounted to €9.1 million.
- the free cash flow recovered to €25.7 million.
- L’net financial debt (EFN), excluding lease debts, fell from €474.5 million as of December 31, 2021 to €450.0 million as of June 30, 2022.
Eddy Duquenne, CEO of Kinepolis Group, on the first half:
“I am proud of the company’s financial recovery and of our regained financial capacity, which will allow us to continue our internal and external expansion. Blockbusters play an important role in the recovery of cinema attendance, while we expect mid-range and local films to reach their full potential in the months to come. Our strategy of focusing on the premiumization of the customer experience is bearing fruit and contributing significantly, along with the implementation of our Entrepreneurship plan, to the recovery of our operating profit. »
2022 half-year financial report attached.
1 Figures from January 1 to June 30, 2022.
2 Press release based on unaudited figures.
3 Figure corrected for one-off items related to Covid-19.
